Embassy Real Estate Holdings, LLC v. District of Columbia Mayor’s Agent for Historic Preservation

Embassy Real Estate Holdings, LLC (Embassy) (plaintiff) filed suit against the District of Columbia Mayor’s Agent for Historic Preservation (Mayor’s Agent) (defendant) to challenge the Mayor’s Agent’s decision to designate property owned by Embassy as a historic landmark and void construction permits Embassy had obtained to perform demolition and construction on the property. The property being considered was a former Italian embassy, which Embassy purchased and intended to develop into residential condominiums. Embassy retained an architectural design team that suggested the property was likely eligible for historic-landmark designation. Embassy applied for multiple permits to develop the property, including a construction and excavation permit that Embassy requested from the Department of Regulatory and Consumer Affairs (DRCA) on September 14, 2005. On January 6, 2006, the Historic Preservation Office (HPO) filed an application to designate Embassy’s property as a historic landmark and immediately notified DCRA and Embassy. Despite receiving notice of the application, DRCA issued the permits for construction and excavation in early February. On February 23, the Historic Preservation Review Board (HPRB) designated the property as a historic landmark and shortly thereafter notified the DRCA of the designation and asked DRCA to void the construction and excavation permits because they were improperly issued while a landmark-designation application was pending. Embassy appealed the HPRB’s decision to the Mayor’s Agent, but the Mayor’s agent affirmed HPRB’s decision and voided the construction and excavation permits. Embassy filed for judicial review.